CNNBC recently reported that the mean annual cost of auto insurance is 977 dollars. Assume the standard deviation is 252 dollars, and the cost is normally distributed. You take a simple random sample of 36 auto insurance policies. Round your answers to 4 decimal places. a. What is the distribution of X? X - N( b. What is the distribution of ? - N c. What is the probability that one randomly selected auto insurance is less than $1020? d. a simple random sample of 36 auto insurance policies, find the probability that the average cost is less than $1020. e. For part d), is the assumption of normal necessary? No Yes

PREALGEBRA
15th Edition
ISBN:9781938168994
Author:OpenStax
Publisher:OpenStax
Chapter5: Decimals
Section5.5: Averages And Probability
Problem 400E: The cash register receipts each day last week at a coffee shop were $1,845. $1,520. $1,438, $1,682,...
Question

J 1

CNNBC recently reported that the mean annual cost of auto insurance is 977 dollars. Assume the standard
deviation is 252 dollars, and the cost is normally distributed. You take a simple random sample of 36 auto
insurance policies. Round your answers to 4 decimal places.
a. What is the distribution of X? X-N
b. What is the distribution of ? - N
c. What is the probability that one randomly selected auto insurance is less than $1020?
d. a simple random sample of 36 auto insurance policies, find the probability that the average cost is
less than $1020.
e. For part d), is the assumption of normal necessary? No Yes
Transcribed Image Text:CNNBC recently reported that the mean annual cost of auto insurance is 977 dollars. Assume the standard deviation is 252 dollars, and the cost is normally distributed. You take a simple random sample of 36 auto insurance policies. Round your answers to 4 decimal places. a. What is the distribution of X? X-N b. What is the distribution of ? - N c. What is the probability that one randomly selected auto insurance is less than $1020? d. a simple random sample of 36 auto insurance policies, find the probability that the average cost is less than $1020. e. For part d), is the assumption of normal necessary? No Yes
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